Micron Technology, Inc. (NASDAQ:MU) could be one of the worst stocks that investors may not want to consider for their portfolio today as the company shares are trading 3.03% or 1.45 points down from last closing price of $47.82, reaching $46.37 at last check. Any clue why there is so much of action in the MU stock? The share price has dropped in 2 of the last 5 days and is up 8.12% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 364,011 shares, and in total 12.995 million shares valued at $602.588 million were seen changing hands compared with 12.631 million shares valued at $604.024 million recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the MU stock.
Micron Technology, Inc. (MU) shares have notched a 3-month gain of about 8.12%, but has still advanced 50.71% year to date. By comparison, the stock added 19.82% over the past 12 months, while it jumped 10.01% over the 1 month. The company’s market cap is around $52.84B, with its short interest ratio standing at 0%.
In the current trading session for MU, the stock witnessed two major price actions, it rose to a high of $48.16 and was down as much as $46.28 at one point. The high recorded is very low when compared to their 52-week high which is $28.39. The 52-week high is now at -9.51 distance from current price. Their recent low of $51.39 represents a 63.81% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for MU is $54.83, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Micron Technology, Inc. earned $5.46 per share in the trailing 12 months and has a P/E ratio of 8.49. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 28.29 and lower compared to the sector’s average of 31.39. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. MU also has P/S multiple of 2.2. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.76x.
MU‘s last price was up 10.17% as compared to the average trading price of 50 days recorded at $42.09 while enlarging the period to 200 trading days, the average closing price was $46.72. At present, there are 1.11 billion in the total number of common shares owned by the public and among those 1.1 billion shares have been available to trade. The percentage of shares being held by the company management was 0.2% while institutions stake was 80.8%. The company has generated positive returns on equity over the last 12 months (18.1%). It managed to keep its gross profit margin at 45.7% over the past 12 months.
When assessing the full upside of the MU stock, there is another set of technicals that should be looked into and considered. Its -1.93% decline from moving average of $47.28 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.97 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of Micron Technology, Inc. — 22 analysts rate the stock as a buy with another 0 rating it strong buy. There are 10 analysts who maintain a hold rating for the stock, with 3 giving it a sell rating. Analysts arrived at a 12-month price target of $53.46 on shares of Micron Technology, Inc. (NASDAQ:MU), which corresponds to 15.08% upside potential than its current market price of $46.37 and implies potential despite the recent drop in the price. However, their current target price has climbed from $53.36 a month ago and is up handily from the consensus target of $48.46 a quarter ago.
In the last five years, the EPS of the company has been roughly 16.8%. Though the percentage looks encouraging, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has risen at an average annualized rate of about 7.4 over the last five years. The company recently recorded a drop of -42.3%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards MU stock. MUFG Americas Holdings Corp changed position in the company and now owns 2,800 shares worth $129,836, SEC documents show. Cetera Investment Advisers shored up assets in the stock as 16710.05 shares have been purchased, increasing its stake by 4.5% to 17,462 shares which are currently valued at $809,713. In addition, Financial Architects Inc recently reported that it now owns 1,360 shares making a total of $63,063 based on the recent price. This refelects a change of 59.6% in their ownership.